SM Entertainment applies an annual salary system and incentive system based on individual performance and competence.

SM Entertainment offers incentives by measuring the contributions of individuals based on their performance, competence, and achievements. SM Entertainment introduced an American-style annual salary system to expand individual incentives up to the highest level in the industry.
SM Entertainment makes an effort to return and distribute profits to members that have displayed high performance and achievement levels.

OPEN MINDED

SM Entertainment pursues a horizontal, open-minded, and open organizational culture.

SM Entertainment eliminated the hierarchical rank/position system and instead practices mutual respect and open communication that uses respectful titles such as “Mr./Ms. 000” at the workplace.